Search Results for tag: Risk Page 2

In Credit Risk management, it is common practice for banks to use financials for assessing the creditworthiness of large and mid-corporates, with the drawback of being outdated by the time the credit review takes place. This paper proposes the use of real-time transactional data to circumvent this issue. This process can be further improved by setting in place teams dedicated to data management and preparation with the benefit of centralising the information used for other purposes, e.g. modelling, loss collection, monitoring, validation.

Climate Change

White Paper

Beyond Green Banking, Climate Change is changing Prudential Supervisory Expectations for Banks

Climate change is an important and growing trend for the financial sector. The rapidly developing supervisory, investor and customer expectations are presenting new challenges to the financial services sector. As a consequence of the changing risk profile, supervisors in the EU and UK are setting new expectations to ensure banks pro-actively manage their climate-related financial risk.

Inter-Bank Offered Rates

Briefing Note

Preparing for the end of IBOR

Inter-Bank Offered Rates (IBOR, of which LIBOR is one example) are being forced out due to regulatory pressure following a series of scandals. This transition will have significant ramifications as these rates are used as references in many wholesale transactions and some retail transactions. Following industry and regulatory consultations, new Risk-Free Rates (RFR) are replacing IBORs. In this publication, Avantage Reply will explore the impacts of this transition on banks.

CREDIT RISK

The vast world of Credit Risk has seen some of the most challenging yet interesting changes in banking in recent years. While the basics of Credit remain relatively unchanged, industry players and regulators have been busy expanding the horizons to both optimize processes and effectively monitor risk. Avantage is keeping pace on multiple fronts, taking head on some of the hottest topics in Credit Risk today: from the digital transformation revolution of processes and data collection, to the stringent and ever evolving regulatory framework for Non-Performing Loans, to the promising influence of artificial intelligence in risk modeling, Avantage has you covered for best practices and solutions.

What we do

We work with risk functions to address the implications of various change drivers, with the aim of considering risk as an opportunity to drive business insight and improvements to enhance value.

Our risk consulting teams are focused on helping clients formulate and execute plans to address a variety of changes resulting from regulation as well as strategic, technological and operational initiatives. Our diverse team of specialists covers all major risk types (especially credit, market, liquidity, operational) and features a strong quantititive risk capability.

CRO Insights Journal

Getting ready FOR the new general data protection regulation

There have been vast changes since the 1995 introduction of the Data Protection Directive that is being replaced. In this edition, we remind the legal framework and enter the discussion of how the GDPR is being handled by Banks. We share the lessons learned, the challenges and give recommendations. Finally, we welcome our readers to put themselves in the shoes of a DPO and tackle the complexity of GDPR with a PAI.

Model Risk

White Paper

Model Risk Management

Models are an integral part of modern banking. They are used inter alia to price transactions, value portfolios and optimise returns. They are also a key cornerstone of the regulatory framework, used to determine required capital and liquidity. In this paper, we set out the key cornerstones of a modern model risk management framework. We start with an overview of the regulatory (i.e., mandatory) requirements, but then consider in greater detail other aspects of the framework, in particular those where some element of management discretion remains.

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